What is the Freddie Mac form used for calculating self-employed income?

The Freddie Mac form used for calculating self-employed income is the Freddie Mac form 91. This form is specifically designed to evaluate income reported on a borrower's personal tax returns. When dealing with self-employed borrowers, lenders must consider various aspects of their income, which can be unconventional compared to traditional employment. The form allows for accurate assessment by summarizing the necessary documentation provided by the borrower, including income tax returns, profit and loss statements, and other financial documents.

Using the Freddie Mac form 91 helps ensure that lenders have a consistent method to analyze the income of self-employed individuals, taking into account factors such as business expenses and fluctuations in income that may occur over time. It is essential for loan originators to be knowledgeable about this form, as it plays a critical role in the underwriting process for self-employed borrowers.